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The Incredible Shrinking Alpha How to be a successful investor without picking winners 2nd Edition by Larry 9780857198259 0857198254

Name: The Incredible Shrinking Alpha How to be a successful investor without picking winners 2nd Edition by Larry 9780857198259 0857198254
SKU: EB-36879102
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The Incredible Shrinking Alpha How to be a successful investor without picking winners 2nd Edition Larry E. Swedroe Digital Instant Download

Author(s): Larry E. Swedroe, Andrew L. Berkin

ISBN(s): 9780857198242, 9780857198259, 0857198246, 0857198254

Edition: 2

File Details: EPUB, 666 KB

Year: 2020

Language: English

SKU: EB-36879102 Category: Business & Economics - Personal Finance Tags: Incredible Shrinking, Investor, successful investor, winners

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The Incredible Shrinking Alpha How to be a successful investor without picking winners 2nd Edition Larry E. Swedroe – Ebook Instant Download/Delivery ISBN(s): 9780857198259, 0857198254

Product details:

ISBN 10:0857198254
ISBN 13: 9780857198259
Author: Larry

The Incredible Shrinking Alpha 2nd edition
How to be a successful investor without picking winners

Active managers persistently lag the returns of benchmarks and index funds that track them, with the excuses for underperformance recycled every year. This comprehensive book is the antidote for the active managers’ siren song. If you understand the benefits of indexing, or systematic investing, it will reinforce your commitment while increasing your knowledge. If you don’t yet believe, Swedroe and Berkin provide a compelling case that you’re playing the loser’s game of active management. Alpha, or outperformance against appropriate risk-adjusted benchmarks, is shrinking as it gets converted into beta, or factor exposures. They demonstrate that even for the most talented managers, their ability to add value is waning because: the amount of alpha available is declining; it must be split among an increasing amount of investment dollars; and the competition is getting tougher. In this greatly expanded second edition, Swedroe and Berkin show you how to develop an investment plan that focuses on what risks to take, and how much of them, as well as how to build a diversified portfolio. They present a list of vehicles to consider when implementing your plan and provide guidance on the care and maintenance of your portfolio. As a bonus they add appendices that will make you a more informed and, therefore, better investor. This makes The Incredible Shrinking Alpha a complete guide to successful investment strategy.

Table contents:

Introduction: The Active Versus Passive Debate
Chapter 1: The Quest For The Holy Grail: What Was Once Alpha Becomes Beta
Asset pricing models
Explaining Buffett’s alpha
Bond investing
The twenty dollar bill
Chapter 2: The Pool Of Victims Is Shrinking
The trend is not the friend of active investors
The rise of passive investing contributes to market efficiency
The good news
A vicious circle
Chapter 3: The Competition Is Getting Tougher
Game theory and investing
The paradox of skill
Diseconomies of scale and fund performance
Decreasing returns to scale
What about Warren Buffett?
The success of the Yale Endowment
The performance of institutional money managers
The nature of the competition
Successful active management contains the seeds of its own destruction
The next Peter Lynch?
The benefits provided by active investors
Chapter 4: Is The Market For Alpha Overgrazed?
Increased supply of capital chasing shrinking pool of alpha
What if everyone indexed?
Chapter 5: Why Do Investors Ignore The Evidence On Actively Managed Funds?
The black hole of knowledge
Explanations from academic research
It’s hard to admit we are wrong
Chapter 6: What You Can Do
1. What risks to take and how much of them?
2. Diversify your risks
3. Invest in systemically managed (structured) funds
4. Keep your costs low
5. Stay disciplined
Factor Fimbulwinter
Diversification means being uncomfortable
Summary
Chapter 7: Asset Allocation
Introduction to asset allocation
The three tests
Asset allocation decisions
Implementation
Recommended mutual funds and ETFs
A living document
The care and maintenance of the portfolio
Conclusion
Appendix A: Does Indexing/Passive Investing Get You Average Returns?
Appendix B: Active Management: The Odds Of Achieving Portfolio Alpha
Appendix C: The Value Of Security Analysis
Buy, sell or hold
Appendix D: The Performance Of Active Managers In Bear Markets
Appendix E: For Actively Managed Funds How Long A Track Record Is Enough?
The 44 Wall Street Fund
The Lindner Large-Cap Fund
The Legg Mason Value Trust Fund
The Tiger Fund
Appendix F: Should Investors Prefer Dividend-Paying Stocks?
Dividend policy irrelevant to stock returns
The math of cash dividends versus home-made dividends
The explanatory power of dividends
Taxes matter
The evidence
The dividend disconnect
Implications
Attempting to explain the preference for dividends
Conclusion
Appendix G: Are Professional Investors Prone To Behavioral Biases?
Supporting evidence
Glossary
References
Publishing details
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